NEW YORK, Nov 26 (Reuters) - As the debate around tax reform
grows more heated, broker-dealers and other companies that
service retirement plans offered by employers are increasingly
concerned that the tax benefits of 401(k) plans are on the
chopping block.

An industry group that normally works behind the scenes, the
American Society of Pension Professionals and Actuaries, on
Monday launched a media campaign intended to educate U.S.
employers and workers that the federal government might consider
changing the tax benefits of retirement savings accounts.

That worries the ASPPA because Americans might end up saving
less, and some smaller employers might eventually decide to
discontinue their own 401(k) plans.

The "Save My 401(k)" campaign includes a website, Facebook
page, Twitter feed, and even an online videogame. The budget is
undisclosed but is in the six figures, according to the ASPPA's
chief executive, Brian Graff.

The goal of the media campaign, said Graff, is to raise
awareness among employers and employees that they may be in
danger of losing some of the tax breaks surrounding their 401(k)
plans.

The ASPPA has 11,000 member companies including
broker-dealers and record keepers who service the retirement
savings plans offered by U.S. employers.

In the wake of the November U.S. elections, the federal
government is mulling a possible increase in taxes as a means of
reducing the federal budget deficit.

A full-scale tax reform could cut or limit specific tax
breaks as a way of lowering overall tax rates. President Barack
Obama has said he will raise taxes for wealthy Americans, and
trade groups representing both employers and financial services
firms have voiced concerns that the tax benefits of 401(k) plans
could be slashed.

"The last time Congress made major changes to the tax code,
there was a drop in 401(k) contributions by more than 70
percent," Graff said in an interview.

Under the current system, investors who place money in their
401(k) plans do so on a tax-deferred basis, which means they
pay no taxes on that money until they withdraw it from the plan.

At present, employees are allowed to put $17,000 a year into
their 401(k) plans. In 2013, that amount is scheduled to
increase to $17,500.

ASPPA officials have been in talks with members of Congress
about their concerns, but the industry group believes it should
now reach out to investors, given the importance of the
situation, Graff said.

"Everyone we met with said we had a great story, but they
said they had to hear from the constituents."

Through the "Save My 401(k)" campaign, ASPPA members -
including large brokerage firms such as UBS ,
Bank of America Merrill Lynch and LPL Financial
- intend to reach out to clients and encourage them
to write letters to Congress.

Chief among ASPPA's concerns is that if 401(k) plans lose
some tax advantages, small businesses may terminate their plans
because the costs will outweigh the benefits, Graff said.

Currently, 84.5 percent of all 401(k) plans are offered by
businesses with fewer than 100 employees, according to the
Employee Benefit Research Institute.

ASPPA's goal is to have a total of 250,000 emails sent to
members of Congress over the next six months, Graff said.
"We have never done anything close to this scale," he said.